There’s So Much You Should Know About Retirement Planning

According to a survey, many workers misunderstand fundamental retirement income issues, indicating those plan sponsors should endeavor to improve participants’ understanding of financial and economic principles.

In the Insured Retirement Institute’s (IRI) “Retirement Readiness Among Older Workers 2021” survey, 26% of respondents were able to estimate the correct amount of annual income they would need in ten years to maintain their current living standards, accounting for a yearly 3% rise in inflation.

“Knowing how inflation will affect your spending power is vital for retirement planning,” says Frank O’Connor, IRI vice president of research. “Retirees must recognize the necessity of allocating a percentage of their retirement investment portfolios to risk assets, which have a better chance of keeping up with inflation than ‘safe’ investing options.”

Participants can offer themselves a constant stream of protected income for each month of their lives by putting a portion of their retirement assets into annuities while investing the rest of their resources to generate growth.

IRI also discovered that only around a third of respondents correctly assessed the monthly income that can be securely removed from an investment portfolio.

“Failure to comprehend the amount of monthly income that retirement savings might create could lead to unduly optimistic retirement income expectations, hastening the depletion of retirement funds. “This also highlights another advantage of annuities: using a portion of savings to lock in lifetime income is a disciplined method to invest assets and avoid overspending.”

Plan sponsors should consider incorporating exposures to a mix of asset classes, both within the suite of target-date funds and on the investment menu, for inflation protection.

According to the survey, nearly 70% of participants do not understand that when taking regular withdrawals for retirement income, it is preferable to endure a significant market correction late in retirement rather than in the beginning.

“Failing to consider the sequence of returns risk immediately before or during the early stages of retirement could have a significant negative long-term impact on retirement savings, resulting in the exhaustion of financial assets while income is still required.

When asked what the average monthly Social Security retirement payout is, 42% correctly stated $1,500. However, the average monthly benefit was overestimated by 40%.

Retirees should speak to a financial advisor to build a retirement plan that includes ways for earning protected income that cannot be outlived.

Contact Information:
Email: [email protected]
Phone: 3234811328

Bio:
For over 13 years, Jason Anderson has served as a Personal Financial Advisor, Estate and Retirement Planner, helping to educate individuals from all walks of life and income levels on wise money investment and planning for a comfortable lifestyle and retirement.

Over time, Jason Anderson has become the ‘Go-To’ leading authority on personal financial advising, financial planning, and analysis, as well as retirement planning and financial planning for SMALL BUSINESS OWNERS. He also provides HIGHLY Popular financial education seminars for groups. These financial seminars empower people to more effectively budget, plan, manage their money, and achieve their personal financial goals. As a result of the excellent results, praise, and feedback that their financial seminars have received, the City of Los Angeles, The AFL-CIO union groups, as well as several other organizations, have decided to partner with Jason to more effectively accomplish their mission. He was also honored to be showcased in the November 2014 issue of Forbes Magazine “Americas Financial Leaders” and has been dubbed by the media as ‘The Financial Educator.’

Jason is passionate about the work he does because it brings him joy to help his financial planning and advising clients reach their financial goals. He finds excitement in assisting families in saving and paying for their children’s college education without stress, thanks to the financial plans he designs for them. He also takes pride in witnessing clients reach retirement and enjoy it precisely the way they desire.

Personally, Jason finds joy in being a husband and father of two wonderful children. In his spare time, he enjoys traveling, sports, hiking, and reading.

He works with Employees, Business Professionals, Business Owners, and ‘High Net Worth’ People.

► Like to discuss your personal financial situation?
☏ Call Jason at (323) 481-1328 for a FREE Consultation
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Disclosure:
All annuity and life insurance products are designed to supplement securities as part of an overall plan. The recommendation of annuities and life insurance is not designed to eliminate the need for securities in any way.